Sunland's Budds Beach Project is no more, so what next?

[Locke]

Well, Sunland were meant to next build that 1 billion dollar Budds Beach development with CP1, which would have had (I think) a few 40 storey towers that apparently were meant to be really world class cutting edge architecture, but it appears from the article below that Sunland have pulled out of that (not to worry though CP1 will still go it alone).

So we face the funny situation that with Q1 done, and Circle and Avalon well on it's way, Sunland doesn't appear to have anything new in the pipeline for the Gold Coast (though they will still be building more of those boutique towers on St Kilda Road in Victoria).

Sounds like a great opportunity then for Sunland to focus on whacking up another big tower in Surfers! (they just gotta find some land first!)

Sunland and City Pacific buddies no more

By Stephen Naylor
Sep 23, 2005


The Board of Sunland Group Limited and CP1 Limited have jointly agreed to relinquish their heads of agreement for the Budds Beach development project at Surfers Paradise. The property currently operates as the Mercure Resort.

The announcement coincides with both groups agreeing to the disposal of City Pacific Limited's interest in Sunleisure limited to a syndicate of private investors. City Pacific holds a 55% stake in CP1.

CP1 owns the 2.5 hectare Budds Beach property, which is earmarked for a $1 billion residential precinct development. CP1 and Sunland originally announced they would jointly develop the site in late 2004.

However CP1 will now develop the property in its own right.

In November 2004 Sunland announced it would sell its management rights to an entity to be known as Sunleisure Group Limited, with 49% sold to City Pacific Limited, 2% sold to Brisan Projects Pty Ltd, and Sunland retaining a 49% interest.

This entity was to be floated in May 2005. However, due to the softening market conditions at the time, Sunleisure withdrew the float on 6 May 2005.

A syndicate of private investors has now purchased the 49% share currently held by City Pacific, with Brisan and Sunland retaining their respective interests.

Joint Managing Director of Sunland Group Limited, Mr Soheil Abedian, said plans for the float of Sunleisure were still in the pipeline.

"Although the original plan to float Sunleisure in May this year did not occur, the unlisted entity will continue to grow the tourism, leisure and management rights business until such time that Sunleisure has a proven track record and market conditions are more conducive to a public float," Mr Abedian said.

City Pacific Limited's Managing Director, Mr Phil Sullivan, said with the delay of the float the ongoing funding of Sunleisure was not consistent with the company's priorities.

"We see continued growth in the tourism, leisure and management rights industry and we will continue to fund projects in this area," Mr Sullivan said.

Sunleisure currently owns and manages the Oasis Resort in Cairns, and is responsible for the management of Legends Hotel, and Lumiere on the Gold Coast.